PPA prices falling across Europe, says Pexapark

Pexapark says power purchase agreement (PPA) prices are falling in Europe, with prices in Spain and Portugal down by 6.4% and 6.2% to €40.90 ($43.99)/MWh and €39.60/MWh, respectively.

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From pv magazine Spain

Pexapark, a Swiss consultancy, said in its April monthly report that electricity markets are now recovering, following a series of uncontrollable events that have affected the European energy industry.

On the price front, the Pexa Euro Composite Index fell by 2.5% month-on-month due to declining electricity and raw material prices. The Netherlands experienced the largest decline of 9.5% to €56.72/MWh, while Spain and Portugal saw drops of 6.4% and 6.2% respectively, reaching €40.90/MWh and €39.60/MWh.

However, prices in the United Kingdom rose by 3.5% to €82.29/MWh in April, and Scandinavian countries increased by 1% to €50/MWh, while Italy saw a 0.7% increase to €75.60/MWh.

After a strong first quarter of 2023, PPA activity slowed down in April, with 16 announcements totaling approximately 922 MW, a 55% decrease compared to March. This represents the lowest monthly capacity since last September, with eight fewer agreements registered, reflecting a decrease of 33%.

The notable deal this month involved Statkraft’s acquisition of NextEnergy’s 210 MW Portuguese solar portfolio, resulting in a purchase of 341 GWh per year.

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